Dividend Reinvestment

The Cummins Dividend Reinvestment Plan, administered by our transfer agent, EQ Shareowner Services provides you with a simple, inexpensive way to have your dividends automatically reinvested in additional Common Stock of the Company.

In addition, participants may make voluntary investments as often as once a month in varying amounts from $10 to a maximum of $24,000 per calendar year to purchase Common Stock of the company.

Participants can also deposit any Company Common Stock certificates registered in their names for safekeeping under the Service, at no cost.

Who may participate?

All Common shareholders of record of the Company are eligible to participate. If you own shares held in the name of a broker, bank or other nominee and wish to participate, you should request that shares be transferred to your own name.

How does the automatic dividend reinvestment service work?

Upon receipt of your completed enrollment authorization form EQ Shareowner Services will enroll your account in the Dividend Reinvestment Plan. Any investments you decide to make by automatic reinvestment or cash contributions will be credited to your account. EQ Shareowner Services will combine funds received from all participants and make bulk purchases of the Company's Common Stock.

Promptly after every purchase, EQ Shareowner Services will send each participant an itemized statement of amounts received, shares purchased (full and fractional), price per share and new share balance. You do nothing else.

Voluntary cash payments of any amount from $10 to a maximum of $24,000 per calendar year can be invested.

Voluntary cash payments may also be made through monthly automatic deductions from checking or savings accounts. The minimum monthly deduction is $10 and the maximum is $24,000 per calendar year. Only participants with accounts at U.S. banks and financial institutions may authorize monthly automatic deductions.

You can take advantage of the long-range benefits of dollar-cost averaging by investing small amounts more often and on a regular basis.

Your money is fully employed through purchase of both full and fractional shares.

You are sent an easy-to-understand statement from EQ Shareowner Services each time your dividends and/or cash payments are invested.

All shares purchased through the Plan are held for you by EQ Shareowner Services. This convenience provides protection against certificates being lost, misplaced or stolen.

You may also send EQ Shareowner Services your other Company Common Stock certificates for safekeeping, free of charge.

How much does it cost?

There are no brokerage commissions or service charges connected with stock purchases. These costs are paid by the Company. Every penny available in your Dividend Reinvestment Plan account will be used to buy more shares for you. However, as explained below, you will pay any brokerage commissions, a service fee and any other costs incurred in the sale of shares held under the Plan.

When will purchases be made?

There are twelve purchases. on or shortly after the dividend payment dates and the fifteenth day of each of the non-dividend payment months. Any voluntary cash payments made by a participant must be received by EQ Shareowner Services prior thereto. (The account statement has a tear-off stub that should be used when submitting your payment.) No interest will be paid on funds held by EQ Shareowner Services pending investment.

Who controls shares held under the plan?

You do. You have full voting power for the full shares in your account. You are credited with all distributions. including stock splits and dividends. payable on these holdings.

Will stock certificates be issued for shares purchased under the Plan?

For your convenience, all shares purchased for you by EQ Shareowner Services are held in your Dividend Reinvestment Plan account. Certificates for full shares credited to your account will be issued (at no cost) and sent to you only upon written or telephone request to EQ Shareowner Services.

Can participants sell shares held under the Plan?

You may at any time, including upon withdrawal from the Plan, request the sale of all or any full shares held by EQ Shareowner Services in your account. Any such request may be made in writing or by calling EQ Shareowner Services at 1-800-468-9716. EQ Shareowner Services will make every effort to process all sales requests the next business day after receipt, provided they are received by 5:00 p.m. Central time on a business day during which EQ Shareowner Services and the relevant securities market are open. The proceeds from such sale, less any brokerage commissions, a service fee and any other costs of sale, will be remitted to you. Each sale request will be processed and a check for the net proceeds will be mailed as promptly as possible after EQ Shareowner Services receives such sale request.

What other factors should be considered?

In making your decision to join the Dividend Reinvestment Plan, you should consider the following factors:

You will no longer receive cash dividends, as these dividends will purchase additional Common Stock of the Company.

Even though you do not receive your cash dividends, you will be responsible for reporting them. EQ Shareowner Services will provide you with information for tax purposes.

You should be aware that the money you are investing is used to purchase Common Stock, which has a continually fluctuating market value.

What are the tax implications for participants?

Even though your dividends will be reinvested, they are subject to income taxes as if they were paid to you in cash. In addition, the Internal Revenue Service has ruled that the amount of brokerage commissions paid by the Company on your behalf is to be treated as a distribution to you which is subject to income tax in the same manner as your dividends.

The Internal Revenue Service has further ruled that the amount paid for brokerage commissions is includable in your cost basis of shares purchased. The information return sent to you and the Internal Revenue Service at year-end will show the amount of brokerage commissions paid on your behalf.

How do I enroll in the Dividend Reinvestment Plan?

Click on Info Request to request a brochure. If you are a shareholder of record, contact StockTransfer@EQ-US.com or phone EQ Shareowner Services at 1-800-468-9716 and request an enrollment form to begin participation in the Dividend Reinvestment Plan.

How can an account be terminated?

You may terminate your participation in the Plan at any time by giving written or telephone notice to EQ Shareowner Services. Upon termination, you will receive a stock certificate for the number of full shares credited to your Service account and a check for any fraction of a share, valued at the then-current market price of the stock less any brokerage commissions, any service fee and any other costs of sale. If you prefer, EQ Shareowner Services will sell all or part of the shares that are held for you under the Service and send you a check for the proceeds less any brokerage commissions, a service fee and any other costs of sale.

Who should I talk to for service regarding the Dividend Reinvestment Plan?

Shareholder customer service, including sale of shares, is available through EQ Shareowner Services at 1-800-468-9716. Normal hours are 7:00 a.m. to 7:00 p.m. Central time each business day.

All correspondence regarding the Plan should be directed to:

EQ Shareowner Services
P.O. Box 64854
St. Paul, MN 55164-0854

Be sure to include your name, address, account number, and a reference to Cummins Inc., on all correspondence, for a quick reply.